On January 1 of Year 1, Drum Line Airways issued $3,100,000 of par value bonds for $2,850,000. The bonds pay interest semiannually on January 1 and July 1. The contract rate of interest is 8% while the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $8,333 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of